Asia stocks rise on China hopes; Japan TRIPS GAINS after BOJ rate hike by Investing.com

Investing.com – Most Asian stocks rose on Friday tracking record highs on Wall Street and optimism over more policy relief for China, while Japanese markets pared some gains after the Bank of China Japan made tariffs and struck a hawkish deal.

Regional markets took a positive lead from Wall Street, where record high President Donald Trump said he will call for an interest rate cut from the Federal Reserve. Asset

U.S. stock index futures stabilized in Asian trading, with Focus looking ahead to next week, when the central bank is largely expected to keep tariffs unchanged.

Sentiment towards Asian markets was also supported this week by China describing more support for local stocks as they faced concerns over rising trade tariffs under Trump.

Japanese stocks pare gains as BOJ raises interest rates, warns on economy

Japan and the indexes rose 0.4% and 0.6%, respectively, paring some gains after the BOJ’s move.

Both indexes traded between 3% and 5% this week as analysts bet that a BOJ rate hike was largely priced.

The central bank raised as expected but forecasts higher inflation and slower growth in coming years.

The BOJ also warned it would raise interest rates further if its economic forecasts were met, providing one of the clearest signals on higher rate hikes.

Strong inflation data released earlier in the day boosted bets on a rate hike.

But while the higher rates are rising badly for Japanese markets, they also reflect growing confidence in the local economy, which is benefiting from domestically exposed sectors.

The Purchasing Managers’ Index released Friday showed Japan’s sector shrank for a seventh straight month in January. But recovery growth has picked up sharply.

Chinese stocks rise on politicians’ joy; Hong Kong Rally

The China and indexes rose 0.7% and 0.4%, respectively, extending gains from earlier in the week.

The Hong Kong index was a standout performer in Asia, rallying 1.7% on gains in major chip mastering stocks, as investors bet that recent U.S. export controls would boost local demand for the sector.

Sentiment towards China was buoyed by Trump floating the idea of ​​a Sino-US trade deal, just days after threatening to impose 10% tariffs on Beijing by February 1. Chinese markets initially fell this week after Trump’s threat.

But local markets rebounded on more political support from Beijing. The government has asked insurers and state-run financial institutions to deploy more capital into local equities.

Chinese markets will be closed next week for the Lunar New Year holiday. But before that, key data for January is due on Monday.

Broader Asian markets were mostly upbeat. Australia added 0.5%, although business activity remained weak in January.

Gain in Chipmunk Manufacturing Stocks – on optimism over $500 billion artificial intelligence project in U.S., South Korea up 0.8%.

Singapore’s index fell slightly as the Monetary Authority of Singapore loosened monetary policy for the first time since 2020, warning that it expects growth to be slower than initially forecast this year. But inflation is also expected to fall.

Futures for the India index pointed to a flat open as the index dashed near seven-month lows.